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Business, 11.02.2020 18:55 lilrider777
Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. Selected data about the company's operationsfollows:
Actual manufacturing overhead cost
$500,000
Estimated manufacturing overhead cost
$550,000
Estimated direct labor cost
$175,000
Estimated direct labor hours
50,000
Actual direct labor hours
60,000
Estimated machine hours
40,000
Actual machine hours
35,000
By how much was manufacturing overhead overallocated or underallocated for the year?
A.
$100,000 underallocated
B.
$160,000 overallocated
C.
$50,000 overallocated
D.
$50,000 underallocated
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